Private Letter Ruling

Ruling Number:P-2005-020
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Electrical work; work done on main breaker; exemption for manufacturing machinery and equipment.
Approval Date:07/12/2005

Office of Policy & Research

July 12, 2005

(Redacted) Dear (Redacted):

Thank you for your recent letter. You work for an electric company and ask: "Would a company be able to use this exemption certificate (manufacturing machinery and equipment) for work done on a main breaker that would supply power to a piece of machinery used in production?" The answer to your question is yes, with one exception. That exception occurs if the main breaker supplies power to both exempt production equipment and taxable lighting, heating, etc. and more than 50% of the electricity is for the taxable use. Provisions in K.S.A. 2004 Supp. 79-3606(kk) supports this answer.

Subsection (3)(I) of K.S.A. 2004 Supp. 79-3606(kk) provides:

Subsection (5)(c) provides: Subsection (6) and (2)(F) provide:
I believe that these statutory provisions clearly answer your question. This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling. Please let me know if you have additional questions.

Date Composed: 07/12/2005 Date Modified: 07/12/2005